MIG Guide to January 2018 Government Shutdown- What does this mean for my loan?

With the temporary shutdown of the government announced on at 12:01 AM Eastern Saturday (1/20/18), we wanted to take the time to explain what this could mean for your loan.

During the last government shutdown in October 2013, 17% of closings were affected by delays.

We are highly automated at Mortgage Investors Group (MIG), and due to the automation of the government systems, we do not see a massive change or delay in our process. We will work each loan on a case by case basis to overcome any hurdles as fast as possible.

Here is a quick overview of what is affected during the temporary government shutdown.

Department of Housing & Urban Development will not be available until the shutdown is resolved. They have announced that their website & social media will not be updated during the lapse of federal funding. No new commitments for USDA/RD loans will be issued as their underwriters will not be reviewing files until the shutdown is resolved.

Federal Housing Administration will continue with normal workflow due to MIG being a Direct Endorsement Lender.
HUD has released an Operations & Systems Availability During Government Shutdown document.
Due to the lack of staffing at FHA/HUD, your loan has a chance to be delayed.

The Department of Veteran Affairs will continue to guaranty loans through the shutdown, covered in the VA’s contingency plan.

The National Flood Insurance Program has officially lapsed with the government shutdown. If your home requires flood insurance, certificates will be available, but Flood Insurance policies will not until the government is fully operational. This may delay your closing.

Internal Revenue Service is closed and has suspended the processing of all forms, including tax return transcripts. Loans that require social security verification will not be able to close until the Social Security Office is open and available to perform verification services. Internal Revenue Service will search for a valid social security number for information inconsistencies that may have been reported to us by the Credit Bureau. This will assists in raising a red flag if there is possible ID theft.

Tennessee Housing Development Agency loans will grant an exception to tax transcripts.

Fannie Mae & Freddie Mac will continue operating normally since they do not depend on the federal budgetary process for their money.

Mortgage Investors Group has a great team of highly trained loan experts that can update you on the status of your loan and let you know of any delays. We are dedicated to our client’s experience and will do everything we can to avoid delays during the government shutdown. Please contact your loan officer with any questions.

Update- 1/22/17
The Impasse has been reported to have been broken.
A vote can happen at any moment. Follow along here.